Sri Lanka halts debt repayment pending IMF bailout plan

By KRISHAN FRANCIS
Associated Press

COLOMBO, Sri Lanka (AP) — Sri Lanka’s government says it is suspending its repayment of foreign debt, including bonds and government-to-government borrowing. The Indian Ocean nation is dealing with its worst economic crisis in decades, and Sri Lankans for months have endured fuel and food shortages and daily power outages. The government decided to suspend the repayments pending the completion of a loan restructuring program with the International Monetary Fund. Most of the payments would be in hard currency, but Sri Lanka has dwindling foreign reserves and $25 billion in foreign debt to be repaid in the next five years. Nearly $7 billion is due this year. Sri Lanka’s finance ministry says staying current on foreign debt repayment is no longer realistic.